The Office of Fair Trading yesterday confirmed it had decided not to refer the takeover of James Beattie by House of Fraser to the Competition Commission.
In June, House of Fraser agreed to buy Wolverhampton- based Beattie for £69.4 million to widen its geographic coverage.
Beatties later said the agreed deal with Fraser was the only one left on the table after talks with the unidentified suitor, widely believed to be rival store group Debenhams, ended. At the time it said the suitor had told it that it "no longer wishes to pursue the opportunity further".
Beatties, which has 12 stores, including an outlet in Corporation Street, Birmingham, added: " Shareholders are reminded that, following the termination of the discussions with the third party, there is no offer for the company other than the proposal announced by Beatties and House of Fraser."
Despite problems at its store in Corporation Street, Beatties is seen as having an attractive portfolio, as only two of its shops are loss-making.
The value of Beattie's freehold property could be worth as much as £40 million and lead to opportunities for the kind of sale and leaseback deals that both House of Fraser and Debenhams have performed in the past.
Beatties also has sites at Wolverhampton, Solihull, Sutton Coldfield, Aylesbury, Birkenhead, Burton, Huddersfield, Northampton, Dudley, Telford and Worcester.